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Ch 01 - Law, Value Creation, and Risk Management
c. Circumscribed d. Tangential a. Supplier power b. Threat of entry c. Substitution d. Buyer power a. Public b. Private c. Circumscribed d. Tangent a. Counsel is correct that it is unlikely that any investigation will ever occur and that the regulations may be safely ignored. b. Counsel is correct only if Chemoceuticals has not had past investigations because if past investigations have occurred, it is more likely that the company will be the target of future investigations. c. Counsel is incorrect but only because safety regulations are concerned. d. Counsel is incorrect because a legally astute manager will take a proactive approach to regulations. a. Corporate executives may be fined but may not be sent to jail. b. Corporate executives may be sent to jail, but only for offenses endangering others. c. Corporate executives may be sent to jail, but only for fraud involving banks. d. Corporate executives may be sent to jail for violation of criminal laws. a. Although speech promoting marketing was not protected by the First Amendment, the law was unconstitutional based on the due process clause. b. The statute regulated commercial speech, which was evaluated under an "intermediate" standard and the law was, therefore, constitutional. c. The statute did not involve constitutional issues and was, therefore, a permissible type of regulation. d. The conduct prohibited by the law was protected by the First Amendment and the law was unconstitutional.
53. Refer to Fact Pattern 1-1. The use of covenants not to compete involves which of the following forces identified by Michael Porter and referenced in the text?
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54. Refer to Fact Pattern 1-1. The government regulations pertaining to the use of certain pharmaceutical agents involved which of the following types of law?
55. Refer to Fact Pattern 1-1. Assuming that Deven seeks to be a legally astute manager, which of the following is true regarding the advice given by initial counsel to ignore the regulations pending an investigation?
56. Merle, the CEO of a corporation owning a number of pet stores, calls you for advice. Merle shares inside information that the stock of the company is going to go down because of reports that a number of dogs sold by the store had become ill and that Merle, therefore, immediately sold all personal stock in the company before the information became public. Then Merle tells you that counsel has warned of pending charges of securities violation involving Merle’s insider trading. Which of the following is true regarding Merle’s situation?
57. In CASE 1.1 Sorrell v. IMS Health Inc., drug manufacturers challenged as unconstitutional a Vermont statute prohibiting pharmacies from selling prescriber-identifying information for marketing prescription drugs without the consent of prescribers. What was the U.S. Supreme Court ruling in this matter?
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Ch 01 - Law, Value Creation, and Risk Management
58. Under the resource-based view of a firm, when can a firm's resources be a source of sustained competitive advantage?
59. In what three specific ways does U.S. law protect workers?
60. Assume that after paying a large fine, a company survives charges of illegal activity. In what ways does illegal conduct put a company at a competitive disadvantage?
61. Discuss ways in which laws and regulations promote economic growth.
62. How does U.S. business law promote consumer welfare?
63. Law is not just a static, external force acting upon managers and their firms; rather law and organizations are "endogenously coevolutionary."
a. True b. False a. True b. False
64. Legally astute management teams typically wait until later in the strategic development to bring counsel in and evaluate legal considerations.
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